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In trading on Wednesday, shares of the iShares Dow Jones U.S. Index Fund ETF (AMEX: IYY) entered into oversold territory, changing hands as low as $68.12 per share. We define oversold territory using the Relative Strength Index, or RSI, which is a technical analysis indicator used to measure momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30.

In the case of iShares Dow Jones U.S. Index Fund, the RSI reading has hit 28.5 — by comparison, the RSI reading for the S&P 500 is currently 27.9.

A bullish investor could look at IYY's 28.5 reading as a sign that the recent heavy selling is in the process of exhausting itself, and begin to look for entry point opportunities on the buy side.

Looking at a chart of one year performance (below), IYY's low point in its 52 week range is $58.21 per share, with $74.14 as the 52 week high point — that compares with a last trade of $68.25. iShares Dow Jones U.S. Index Fund shares are currently trading down about 1.2% on the day.